Cheapest Homes: June 2012 Edition

Let’s check in again on the cheapest homes around Seattle proper. Here’s our methodology: I search the listings for the cheapest homes currently on the market, excluding short sales, in the city of Seattle proper. Any properties that are in obvious states of extreme disrepair based on listing photos and descriptions will be excluded. This includes any listing that uses the phrases “fixer,” “rehab loan,” or “value in land.” I post the top (bottom) three, along with some overall stats on the low end of the market.

Please note: These posts should not be construed to be an advertisement or endorsement of any specific home for sale. We are merely taking a brief snapshot of the market at a given time. Also, just because a home makes it onto the “cheapest” list, that does not indicate that it is a good value.

Here are this month’s three cheapest single-family homes in the city limits of Seattle (according to Redfin):

Number 1 and 2 carried on from last month, while last month’s #3 home sold.

Stats snapshot for Seattle Single-Family Homes Under $200,000 (excluding short sales)
Total on market: 48
Average number of beds: 2.5
Average number of baths: 1.3
Average square footage: 1,271
Average days on market: 100

Inventory keeps falling in this segment, just like everywhere else. Meanwhile, the other stats all took a hit as well, except for days on market, which shot up. That would seem to indicate that more and more what’s on the market in this price range is the junk that nobody really wants, at any price.

Here are a couple of charts to give you a visual of the trend of these numbers since I adjusted the methodology in April 2010:

Here are cheapest homes in Seattle that actually sold in the last month, regardless of condition (since most off-market homes don’t have much info available on their condition).

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About The Tim

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.

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15 comments:

Hi Tim, I love all the series you are running on this blog, except for this thread on “cheapest homes”. I am not sure what purpose this serves, and it is not even fun. If you take the position of those who just bought one of those cheapest homes, the feeling is probably not that good.

To be clear, I am not one of the owners of these cheapest homes, so I am guessing and I could be wrong here.

The cheap price, being a pro, typically comes with cons (a feeling I have looking at many of these cheapest homes). We joke about people who do not study and end up working in Walmart, and I guess the same joke can be made to those who end up living in cheapest homes. I am just saying, not that I agree to those Jokes. :)

Also, the most reduction in price does not necessarily mean the house is cheap. I remember posts on this blog about houses sold with a big drop in price as compared to its peak, which I think is a lot more interesting.

I like this series for the purpose of perspective. When you have the median price showing up everywhere, it may become easy to assume you have to spend tons of money on housing.

I would not feel bad at all if I paid under 200k for a house when I see people spending 425k on a house that truly is not that much better. In fact, I think Tim should turn this into the Cheapest/Most Expensive edition. Show us the top 3 and the bottom 3 for some nice comparison.

Is it possible to buy a “livable” house under 200k in Seattle? (IE not necessarily an investment property, although I bet many of these are bought as investments.)
If so, where is it located, and what are the typical lot and house sizes?

I do think that the 1010 S Trenton property doesn’t fit within the criteria since it is labeled “investor” property and does not show interior photos.

Some of you people are snobs. There are plenty of folks who would love to buy/own and live in these- especially the last two. Hell, I’d live in them, and could afford much, much better.

The guy who buys one of these, pays it off, then goes on to either invest in assets, education, travel, etc. will likely beat the pants off of most of most here when the final tally of a life well lived comes.

I like this series. Much emphasis is put on the high-end end of the market as it is. Question for Tim: was there ever a time (peak bubble?) that you were unable to find three listing that met your requirements for “cheapest homes”?

These are not being touted as the best deal, simply the cheapest listing. It adds perspective and balance.

They’re all under 1500 SF….gosh, even an all electric PSE monthly bill could heat this NGT the low 300s/mo during the coldest Winter months, especially if they have 2×6 thick insulation. In SE King county all I see them mostly bulding “new” are those giant glueboard energy pigs on dinky lots.